Ryanair is to appeal an €8m (£6.7m) fine for breaking French labour laws in
relation to flight crews operating from its Marseille base.

A court in Aix-en-Provence ruled that the low-cost airline failed to make required social insurance and pension contribution payments between 2007 and 2010 for staff who prosecutors claimed were permanently stationed at the Marseille base and living locally.

The carrier was found to be in breach of the French Labour Code and French Code of Civil Aviation, relating to hidden employment and illegal hiring of labour.

Ryanair denied that, saying it believed it had been operating in Marseille under Irish law, and also hit back at suggestions that it had refused to observe French labour laws to save money.

“These people were employed on Irish contracts, operating on Irish registered aircraft – defined as Irish territory – and have already paid their taxes, social taxes and state pension contributions in Ireland, in full compliance with Irish and EU regulations,” the carrier said.

It said the ruling was based on a French decree in November 2006 – after Ryanair had begun its operations in Marseille – that was “specifically introduced as further state protection for the loss making Air France”.

The carrier said that, once France began legal action, it closed its year-round base at Marseille, operating a summer-only service since April 2011, with “a different base structure”.

A Ryanair spokesman said that as the airline and staff had already made all payments required under Irish and EU law “we do not believe that Ryanair or our people can be forced to double pay these contributions a second time in France”.

The carrier said it was not the first airline to be hit by the French decree, pointing to a €1.6m penalty for easyJet in April 2010 and 2012’s €1m payment for Cityjet.

However, easyJet said there was no comparison between the two situations. “Unlike Ryanair, we employ French people on French contracts,” an easyJet spokesman said.

He added that the easyJet fine, which has since been reduced to €100,000 on appeal, related to a French court ruling that the carrier should be taxed as a French, rather than British company, when operating in France. The airline has lodged a further appeal against both the ruling and the remaining penalty.